Direct yuan-euro trading to start

CHINA would begin direct trading between the yuan renminbi and the euro starting today, the national foreign exchange market’s operator said yesterday, as Beijing seeks to broaden the currency’s global usage. The China Foreign Exchange Trade System said in a statement that it already offered a platform for yuan-euro transactions but direct trading meant the dollar would no longer be used as an intermediary currency to calculate rates. The market operator said the move aimed to promote bilateral trade and investment, facilitate the use of yuan in cross-border trade and lower conversion costs. In June China started direct trade between the yuan and Britain’s pound, one of several currencies to be included in a streamlined regime. China has long had direct currency trade with the US dollar, and in recent years has added Japan’s yen, the Australian dollar, the New Zealand dollar and Malaysian ringgit. – Sapa-AFP